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Sir can u please explain the point b part starting with “at least threshold competence”
(a) Where the marketing concept is adopted, it will still be necessary to deploy threshold capabilities in all critical areas and the possession of unique resources and core competences will enhance the market offering.
(b) Conversely, where strategy is built on unique resources and core competences, marketing activities must be carried out with at least threshold competence if the customer is to be satisfied.
I don’t know where this is from but it is unlikely to be of any use to you in the exam: too detailed.
I think what they are trying to say in (b) is that if you are presenting an organisation as being special (eg unique competences) then the marketing activities must not let the organisation down: the marketing activities must be in line with image they are trying to project.
It would be like Apple (unique design competencies) having poor advertising: the poor advertising would taint the product.
Oh alright. Thank you very much.
Btw its from bpp study text. It was mentioned in an exam focus point box as follows, before point a & b.
“To some extent, the resource-based approach is the opposite to the marketing concept since, instead of approaching strategy on the basis of giving customers what they want, it concentrates on exploiting what the business already has to offer.
In fact, this distinction is largely theoretical, but it leads to some important ideas that you could use in the exam.”That’s ok, but that’s rather different to your original query.
The marketing based approach asks what the market wants and tries to provide that, even if the firm doesn’t really have strong capabilities there. That has a high risk of failure. Just because a company is good at one thing doesn’t mean that it will be good at another.
The resource -based approach asks what we are good at and then sees if those great capabilities could be exploited in some way.
See here: https://opentuition.com/acca/p3/acca-p3-chapter-6-capabilities/
and also chapter 6 of our notes
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